Bangkok--13 Dec--SET
Fundraising through the capital market by Thai listed companies amounted to THB 43 billion in Q3/2006, an increase of 70% year-on-year (y-o-y), according to The Stock Exchange of Thailand (SET). Overall efficiency declined only marginally but was still favorable. Investment decreased by 34% y-o-y.
The corporate update issue of SET Note, the Exchange’s research report, analyzed Thai listed companies’ activities in three key areas: investment, overall efficiency, and fundraising through the capital market, SET Senior Vice President-Research and Information Dr. Sethaput Suthiwart-Narueput said.
“Overall efficiency of listed firms on the Thai bourse (excluding those in the Financials and Non-Performing groups) was still favorable, although slightly down y-o-y, as costs were slightly higher than sales.
“Returns on equity (ROE) and on capital employed (ROCE) stood at 21.4% and 18.4%, decreasing 0.5% and 0.3% respectively,” Dr. Sethaput added.
SET Note Corporate Update Q3/2006 reported that costs increased by 24.9%, while sales grew at 21.3%, reducing the profit margin. Thai public companies generally recorded low financial risk, their debt-to-equity and interest coverage ratios being 1.1 and 7.7 respectively.
“In Q3/2006, Thai public companies invested THB 82 billion in fixed assets, a decrease of THB 39 billion or 34% y-o-y, indicating a slow-down in investment, especially in the resources industry group. In regard to cash flow, Thai listed firms had a THB 116 billion cash inflow from operating activities, and a THB 142 billion cash outflow through investment and financing. Companies had to use their accumulated cash/cash-equivalent from the previous quarter to meet a dividend payout of THB 60 billion,” he noted.
Listed firms raised a total of THB43 billion, or a 70% increase y-o-y. Of this amount, THB39 billion came from the secondary market (mainly THB18 billion through private placement and THB16 billion through offering warrants to existing shareholders). About THB 4 billion was raised through initial public offerings (IPOs).
For more information on SET Note Corporate Update Q3/2006, please visit www.set.or.th/setresearch
For more information, please contact the Corporate Communication Dept.:
Ladawan Kantawong Tel: 0-2229-2036 / Kulvida Jintakawong Tel: 0-2229-2037
Nattaporn Boonprapa Tel: 0-2229-2049 / Watsamon Saowakhonsathien Tel: 0-2229-2797